Music Trade Review
Issue: 1952 Vol. 111 N. 4 - Page 25
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
Manufacturers Should Aid in Eliminating
Trade Practice Abuses Says Emert Rice
TN his address at the Southeastern Re-
•*- gional meeting of the NAMM which
took place recently in Atlanta, Ga.,
Emert S. Rice, chairman of the NAMM
Trade Practice Committee, after point-
ing out how little dealer, salesman,
tuner or customer knew about piano
construction said:
"It is perhaps in the selling of pianos
that some of the most flagrant trade
practice abuses have been promoted.
"Recently I had the pleasure of talk-
ing with a gentleman who was prob-
ably among the country's most able
piano salesmen about 35 or 40 years
ago. In discussing many of the interest-
ing, as well as humorous salesmen's
tactics, he mentioned one used in a
prominent retail sales room of that
time. The technique was as follows:
"As the store's star salesman watched
the other salesman serve prospective
customers, he would slip into a show-
room where he noted a man having
some difficulty closing a sale. Aro-und
his neck would be dangling a typical
medical stethoscope which he would ad-
just and carefully begin to listen at
various parts of one of the pianos in
that room. Of course the story was that
he was checking the vibrations of the
piano to see, as he might explain to
the prospect, that the piano was prop-
erly seasoned. The prospect would be
all eyes. At this point he would un-
obtrusively take charge of the buyer
and it would become known that there
was a certain piano just checked that
was perfect and ready for sale. There
is no need to finish the story!
Bell Metal Plate Stunt
"Then there was the "bell metal
plate" stunt. The salesman would prove
the qualities of the bell metal plate by
taking a 50c piece out of his pocket,
raise the lid of a piano, and tap on the
cast iron plate. By comparison he
could go to the particular piano with
the special "bell metal plate", raise the
lid and at the same time slip his foot
over on the sustaining pedal and then
strike the plate with the 50c piece. Of
course the "bell metal plate" very evi-
dently made it a better piano due to the
sustained sound when he struck the
plate.
"All kinds of stories have been told
about pianos—pianos that have self-
tuning devices, pianos that never need
tuning and all manner of ridiculous
misinformation has been used by sales-
THE MUSIC TRADE REVIEW, APRIL, 1952
men to sell. And we may also add that
every conceivable scheme has been de-
vised to find a piano buyer.
Use of Fake Ads
"For many years probably one of the
most used unethical schemes to locate
a piano prospect is the fake ad claim-
ing that a repossessed piano is avail-
able in a community. This has been
and is now being used either by small
dealers in towns nearby them or by
larger organizations who have spread
the plan into several states. As we know,
the blind ad is usually placed in a
small town paper. When the customer
replies, a truck bringing one or more
usually new pianos will arrive at the
door one day and a clever talking sales-
man may even admit that he docs not
have the repossessed piano but happens
to have a "fine bargain". I was recently
told that one large operator was even
showing fake contracts to prove that
the instrument offered had been repos-
sessed. Usually a very substantial sav-
ing is offered. The customer often winds
up buying a piano "valued" at $800.00
for $600.00, which if he had taken the
precaution to check, could probably
have been purchased at the nearest le-
gitimate dealer's store for $550.00.
"Today with a more widespread
knowledge, together with a broader in-
terest in stamping out fake advertising,
most local newspapers will not accept
blind ads and welcome information
about dishonest layouts. They are in-
terested in protecting the local dealers
as well as the people of their commun-
ities.
Price Cutting
"Of all of the various complaints
that are heard today with regard to
trade practices, most of them can be
traced to what is commonly termed
price cutting. Just what does a price
cutter do? He may give a direct dis-
count. He may call it a cash discount.
He may offer an overvalued trade-in
allowance. Perhaps it comes under the
term of a loss leader. Then there is the
"anonymous friend" who will make a
gift and occasionally it is a "personal
gift" used to cover the discount offered
in a competitive sale. I am not referring
to the disposal of bonafide shopworn
merchandise.
The question is, what can be done
about this problem called price cutting.
The Federal Trade Commission plainly
states that nothing directly can be done
legally. Any merchant can legally sell
his wares at any price he pleases al-
though the fair trade practices rules do
state that it is unethical to sell below
cost with the intent of injuring a com-
petitor.
Literally, then, nothing legally can be
done about any particular dealer who
advertises or tags merchandise at one
price and then under the pressure of a
competitive sale, or for any reason, will
change the price.
We might approach the subject of
price from the angle of value. Just what
is the value of an instrument? Is it the
value of the materials plus the cost of
the labor to make it? In my opinion, it
is rare that the equal cost of two pro-
ducts can make the products equal in
value. I agree with the government that
an individual, whether it be the manu-
facturer, a dealer, or the person making
the final purchase, may value a product
as lie chooses. When one manufacturer
produces a useful article which the pub-
lic finds to be more efficient or useful
than another manufacturer's article,
then we can logically say that it will be
worth more and public competition in
the sale of the two articles will level the
price of one in proportion to it's value
to the other, regardless of production
costs or the cost to the dealer.
"An illustration of public reaction to
a variable nonstandard price is a recent
instance in which one of our service
departments was given a contract to
service an institution's pianos. We
found that one of the reasons that we
were approached was the fact that the
preceding year another firm's service
department had made a certain price to
do the work and then had gone to a
neighboring institution where they had
offered to do their work at a lower
price.
"In* describing the price cutter then,
I would say that he not only causes
some confusion when his neighboring
competitor is a one price operator, but
he is unfair to the public whom he
charges all manner of prices for the
same product. The dealer who deter-
mines by means of the manufacturer's
cost, together with his own needs, a
certain standard price for merchandise,
does not dare to inflate this price be-
cause he would then defeat his objec-
tive to sell competitively.
"In contrast, the price cutter must in-
flate his prices to make allowance for
the discounts, overvalued trade-ins, or
25
Manufacturers Should Aid in Eliminating
Trade Practice Abuses Says Emert Rice
TN his address at the Southeastern Re-
•*- gional meeting of the NAMM which
took place recently in Atlanta, Ga.,
Emert S. Rice, chairman of the NAMM
Trade Practice Committee, after point-
ing out how little dealer, salesman,
tuner or customer knew about piano
construction said:
"It is perhaps in the selling of pianos
that some of the most flagrant trade
practice abuses have been promoted.
"Recently I had the pleasure of talk-
ing with a gentleman who was prob-
ably among the country's most able
piano salesmen about 35 or 40 years
ago. In discussing many of the interest-
ing, as well as humorous salesmen's
tactics, he mentioned one used in a
prominent retail sales room of that
time. The technique was as follows:
"As the store's star salesman watched
the other salesman serve prospective
customers, he would slip into a show-
room where he noted a man having
some difficulty closing a sale. Aro-und
his neck would be dangling a typical
medical stethoscope which he would ad-
just and carefully begin to listen at
various parts of one of the pianos in
that room. Of course the story was that
he was checking the vibrations of the
piano to see, as he might explain to
the prospect, that the piano was prop-
erly seasoned. The prospect would be
all eyes. At this point he would un-
obtrusively take charge of the buyer
and it would become known that there
was a certain piano just checked that
was perfect and ready for sale. There
is no need to finish the story!
Bell Metal Plate Stunt
"Then there was the "bell metal
plate" stunt. The salesman would prove
the qualities of the bell metal plate by
taking a 50c piece out of his pocket,
raise the lid of a piano, and tap on the
cast iron plate. By comparison he
could go to the particular piano with
the special "bell metal plate", raise the
lid and at the same time slip his foot
over on the sustaining pedal and then
strike the plate with the 50c piece. Of
course the "bell metal plate" very evi-
dently made it a better piano due to the
sustained sound when he struck the
plate.
"All kinds of stories have been told
about pianos—pianos that have self-
tuning devices, pianos that never need
tuning and all manner of ridiculous
misinformation has been used by sales-
THE MUSIC TRADE REVIEW, APRIL, 1952
men to sell. And we may also add that
every conceivable scheme has been de-
vised to find a piano buyer.
Use of Fake Ads
"For many years probably one of the
most used unethical schemes to locate
a piano prospect is the fake ad claim-
ing that a repossessed piano is avail-
able in a community. This has been
and is now being used either by small
dealers in towns nearby them or by
larger organizations who have spread
the plan into several states. As we know,
the blind ad is usually placed in a
small town paper. When the customer
replies, a truck bringing one or more
usually new pianos will arrive at the
door one day and a clever talking sales-
man may even admit that he docs not
have the repossessed piano but happens
to have a "fine bargain". I was recently
told that one large operator was even
showing fake contracts to prove that
the instrument offered had been repos-
sessed. Usually a very substantial sav-
ing is offered. The customer often winds
up buying a piano "valued" at $800.00
for $600.00, which if he had taken the
precaution to check, could probably
have been purchased at the nearest le-
gitimate dealer's store for $550.00.
"Today with a more widespread
knowledge, together with a broader in-
terest in stamping out fake advertising,
most local newspapers will not accept
blind ads and welcome information
about dishonest layouts. They are in-
terested in protecting the local dealers
as well as the people of their commun-
ities.
Price Cutting
"Of all of the various complaints
that are heard today with regard to
trade practices, most of them can be
traced to what is commonly termed
price cutting. Just what does a price
cutter do? He may give a direct dis-
count. He may call it a cash discount.
He may offer an overvalued trade-in
allowance. Perhaps it comes under the
term of a loss leader. Then there is the
"anonymous friend" who will make a
gift and occasionally it is a "personal
gift" used to cover the discount offered
in a competitive sale. I am not referring
to the disposal of bonafide shopworn
merchandise.
The question is, what can be done
about this problem called price cutting.
The Federal Trade Commission plainly
states that nothing directly can be done
legally. Any merchant can legally sell
his wares at any price he pleases al-
though the fair trade practices rules do
state that it is unethical to sell below
cost with the intent of injuring a com-
petitor.
Literally, then, nothing legally can be
done about any particular dealer who
advertises or tags merchandise at one
price and then under the pressure of a
competitive sale, or for any reason, will
change the price.
We might approach the subject of
price from the angle of value. Just what
is the value of an instrument? Is it the
value of the materials plus the cost of
the labor to make it? In my opinion, it
is rare that the equal cost of two pro-
ducts can make the products equal in
value. I agree with the government that
an individual, whether it be the manu-
facturer, a dealer, or the person making
the final purchase, may value a product
as lie chooses. When one manufacturer
produces a useful article which the pub-
lic finds to be more efficient or useful
than another manufacturer's article,
then we can logically say that it will be
worth more and public competition in
the sale of the two articles will level the
price of one in proportion to it's value
to the other, regardless of production
costs or the cost to the dealer.
"An illustration of public reaction to
a variable nonstandard price is a recent
instance in which one of our service
departments was given a contract to
service an institution's pianos. We
found that one of the reasons that we
were approached was the fact that the
preceding year another firm's service
department had made a certain price to
do the work and then had gone to a
neighboring institution where they had
offered to do their work at a lower
price.
"In* describing the price cutter then,
I would say that he not only causes
some confusion when his neighboring
competitor is a one price operator, but
he is unfair to the public whom he
charges all manner of prices for the
same product. The dealer who deter-
mines by means of the manufacturer's
cost, together with his own needs, a
certain standard price for merchandise,
does not dare to inflate this price be-
cause he would then defeat his objec-
tive to sell competitively.
"In contrast, the price cutter must in-
flate his prices to make allowance for
the discounts, overvalued trade-ins, or
25
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